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Leader Tries to Brighten Algeria's Image

When leaders gather here each year to set out policies and debate world issues, some use the spotlight to draw attention to their countries.

This year no one seems to be working harder at that than Abdelaziz Bouteflika, who was elected President of Algeria in April after the country had endured seven years of fighting between Islamic militants and an army-backed Government in which tens of thousands of people were killed.

A week ago, Algerian voters overwhelmingly endorsed an amnesty plan devised by Mr. Bouteflika that was intended to persuade militants to surrender so that the country could begin to rebuild. And now, Mr. Bouteflika, who fought against French colonialism and later served a radical leftist Algerian Government as foreign minister, is in New York talking to business groups, courting investors and promoting free enterprise.

Before arriving, Mr. Bouteflika was building bridges closer to home. Algeria, now chairman of the Organization of African Unity, recently was the host to a conference of African leaders, which went smoothly in a country considered too dangerous to visit a year ago. Earlier, Mr. Bouteflika surprised people by greeting Prime Minister Ehud Barak of Israel when they met at the funeral of King Hassan II of Morocco.

''When people shake hands, it's not a world event,'' he said this week in New York.

''I have no problem with a market economy,'' he said in an interview today. ''We had our socialist experience, which was excellent. But at a certain time it reached its limits, and it could only go backward. We are moving to a market economy because we have no choice.

''When you have a bazaar economy, as we do, with trafficking and corruption -- 90 percent of our commercial operations are conducted illegally -- taxes are not paid, or customs duties,'' he said. He has begun a drive against corruption, not a popular measure for a President whose election was contentious. All six other candidates dropped out saying that Mr. Bouteflika, who had the support of the military, would win unfairly.

That crisis now seems to have passed. Violence has been reduced, although at least 5,000 armed militants remain, belonging to two groups that did not accept the amnesty plan. The largest force, however, the armed wing of the Islamic Salvation Front, has decided to work with the Government.

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Mr. Bouteflika has rejected calls for investigations and trials for those in previous Governments and in the military who have been accused of rights abuses, including his predecessor, President Liamine Zeroual. The military still wields substantial political and economic power.

When he was asked about prosecuting Mr. Zeroual, Mr. Bouteflika cut off the questioner with a curt remark: ''You know absolutely nothing about Algeria!''

Algeria, one of Africa's largest countries in area and a population of 30 million, ranks in the middle of the world's nations in terms of development, according to a 1999 United Nations Human Development report. Algerians are slightly better off than Moroccans and slightly less so than Tunisians, their neighbors to the west and east.

Mr. Bouteflika said the message he was telling potential investors is that he represents ''a country, a huge country, with great human and material potential.'' He said he was asking them to look beyond Algeria's oil. ''There is agriculture,'' he said. ''We have the high plateaus and one million acres in the Sahara that can be worked. We have minerals that just need some know-how to develop.''

Economic growth is important, he said, because the middle class has been weakened, ''and the middle class is supposed to insure stability in society.''

Mr. Bouteflika said Algeria remains culturally close to France.

''Relations between Algeria and France are always important,'' he said. ''When they are bad, they are important. When they are good, they are also important.''